Plans to compare cost of business sites in Oak Ridge

Monday

Mar 25, 2013 at 6:07 PMMar 25, 2013 at 6:09 PM

Land prices at Oak Ridge’s Horizon Center currently run about $25,000 an acre and the city’s Industrial Development Board wants to know if the price is in the same ballpark as other area industrial parks.

by Beverly Majors

Land prices at Oak Ridge’s Horizon Center currently run about $25,000 an acre and the city’s Industrial Development Board wants to know if the price is in the same ballpark as other area industrial parks.

IDB Chairman David Wilson said he had asked a local commercial Realtor to check prices for the board for comparison so the board could decide if the cost per acre should be lower or higher, and if the board needs to look for new market areas.

“I asked Ronnie Asher to look at others in the area and let me know if we are where we should be,” Wilson said during a recent work session. Asher is the owner of Ridge Realty in Oak Ridge.

Wilson said the cost per acre at Horizon Center was $50,000 when the Community Reuse Organization of East Tennessee (CROET) was marketing the property. He said IDB has to pay CROET $9,500 per acre so selling for less might not be the best solution.

Member Hal Osucha said he had concerns about the cost of sewer, water and streets, stating potential businesses should know the cost might be higher.

“The price is arbitrary,” said member Buzz Patrick. “We should be prepared to have the negotiation.”

Kim Denton told IDB companies are looking “for free land or reduced land. Once they come they want to know ‘will you cut a deal?’” Denton is the president of the Oak Ridge Economic Partnership, an economic development partner with the Oak Ridge Chamber of Commerce, the city and CROET.